Department of Defense awarded $151M for ADPE System Configuration to General Dynamics Mission Systems, Inc

Contract Overview

Contract Amount: $15,127,622 ($15.1M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-10-04

End Date: 2008-04-26

Contract Duration: 2,031 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: 200303!026572!1700!D0222 !SPACE AND NAVAL WARFARE SYSTEMS !N0003902C0013 !A!N! !N! !20021004!20030930!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000003541515!N!N!000000000000!7010!ADPE SYSTEM CONFIGURATION !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !3! ! ! ! ! !99990909!B!A!Y!A! !A!N!R!2!003!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 200303!026572!1700!D0222 !SPACE AND NAVAL WARFARE SYSTEMS !N0003902C0013 !A!N! !N! !20021004!20030930!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRF… Key points: 1. Contract value of $151M over 6 years suggests a significant investment in system configuration. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The use of a Cost Plus Award Fee (CPAF) contract type introduces performance incentives but also potential cost overruns. 4. The contractor, General Dynamics Mission Systems, Inc., is a major player in the defense sector. 5. The contract duration of over 6 years implies a long-term need for these services. 6. The primary service category is Computer Systems Design Services, a critical component of modern defense systems.

Value Assessment

Rating: fair

The contract value of $151M over approximately 6 years results in an average annual spend of roughly $25M. Benchmarking this against similar large-scale IT system configuration contracts within the Department of Defense is challenging without more specific service details. However, the Cost Plus Award Fee (CPAF) structure, while common for complex projects, can lead to higher final costs compared to fixed-price contracts if not managed tightly. The total value appears substantial, reflecting the complexity and duration of the required services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of 3 bids indicates a reasonable level of competition for this requirement. A competitive process is generally expected to drive better pricing and value for the government.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, potentially leading to cost savings.

Public Impact

The primary beneficiary is the Department of Defense, which receives essential ADPE system configuration services. Services delivered include the configuration of Digital System Resources, crucial for naval warfare systems. The geographic impact is primarily within the United States, supporting defense operations. Workforce implications include employment opportunities for IT professionals and system engineers at General Dynamics Mission Systems, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts can lead to cost growth if performance targets are not well-defined or if scope creep occurs.
The long contract duration (over 6 years) increases the risk of technology obsolescence or changing requirements.
Reliance on a single large contractor for critical system configuration may pose a risk if their performance falters.

Positive Signals

Award under full and open competition suggests a robust selection process and potential for competitive pricing.
The contractor, General Dynamics Mission Systems, Inc., is a well-established defense contractor with significant experience.
The contract's focus on system configuration indicates a critical need being addressed by the Department of Defense.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and integration. The market for defense IT services is substantial, driven by the need for advanced technological capabilities. This contract likely represents a significant portion of spending for ADPE system configuration within the Naval Warfare Systems Command, contributing to the broader defense IT ecosystem.

Small Business Impact

There is no indication of a small business set-aside for this contract, and the prime contractor is a large business. This suggests that subcontracting opportunities may exist for small businesses, but their participation is not mandated by a set-aside. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the contracting officer at the Naval Sea Systems Command (NAVSEA). Accountability measures are built into the Cost Plus Award Fee structure, which incentivizes performance. Transparency is generally maintained through contract reporting mechanisms, though specific details of system configurations may be classified.

Related Government Programs

Naval Warfare Systems
Defense IT Modernization Programs
ADPE Procurement
Computer Systems Design Services
Department of Defense IT Infrastructure

Risk Flags

Potential for cost overruns due to CPAF structure
Risk of technology obsolescence over the contract's long duration
Dependence on a single large contractor for critical systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 200303!026572!1700!D0222 !SPACE AND NAVAL WARFARE SYSTEMS !N0003902C0013 !A!N! !N! !20021004!20030930!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000003541515!N!N!000000000000!7010!ADPE SYSTEM CONFIGURATION !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2002-10-04. End: 2008-04-26.

What is the historical spending pattern for ADPE System Configuration within the Department of Defense?

Analyzing historical spending for ADPE System Configuration requires access to detailed federal procurement data over multiple fiscal years. While this specific contract represents a significant award of $151M over approximately 6 years, understanding the broader trend involves examining annual obligations for similar services across different defense agencies. Factors influencing historical spending include technological advancements, evolving defense strategies, and budget allocations. Without a comprehensive dataset, it's difficult to pinpoint precise historical patterns, but it's reasonable to assume consistent investment in system configuration to maintain and upgrade critical defense IT infrastructure.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for IT system configuration?

Cost Plus Award Fee (CPAF) contracts are often used for complex research and development or system integration projects where the scope is not fully defined at the outset, and performance incentives are desired. Unlike fixed-price contracts, CPAF allows for reimbursement of allowable costs plus a fee that is based on the contractor's performance against pre-defined criteria. This contrasts with Firm-Fixed-Price (FFP) contracts, which offer greater cost certainty but less flexibility, or Cost-Plus-Fixed-Fee (CPFF) contracts, where the fee is fixed regardless of performance. For IT system configuration, CPAF can be beneficial for encouraging innovation and high performance, but it requires robust oversight to manage costs effectively and prevent contractor overspending.

What is General Dynamics Mission Systems, Inc.'s track record with similar Department of Defense contracts?

General Dynamics Mission Systems, Inc. (GDMS) is a major defense contractor with extensive experience in providing a wide range of IT, C4ISR, and mission systems solutions to the Department of Defense and other government agencies. Their track record includes numerous large-scale contracts for system design, integration, and sustainment across various military branches. GDMS has a history of successfully delivering complex technological solutions. While specific performance metrics for individual contracts are not always publicly available, their sustained presence and continued awards in competitive procurements suggest a generally positive performance history and strong capabilities in areas relevant to ADPE system configuration.

What are the key performance indicators (KPIs) typically associated with ADPE System Configuration contracts?

Key Performance Indicators (KPIs) for ADPE System Configuration contracts often revolve around system performance, reliability, security, and timely delivery. Specific metrics might include system uptime, processing speed, data integrity, successful integration with existing infrastructure, adherence to security protocols (e.g., RMF), and completion of configuration milestones within schedule. For CPAF contracts, these KPIs are crucial for determining the award fee. Effective KPIs ensure that the contractor is meeting the government's technical requirements and operational needs, contributing to the overall mission success of the systems being configured.

How does the geographic location of the contractor (Fairfax, VA) impact contract performance or oversight?

The contractor's location in Fairfax, Virginia, places it within a major hub for defense contractors and government agencies, including proximity to the Pentagon and various Department of Defense commands. This proximity can facilitate communication, collaboration, and oversight activities between the contractor and government personnel. While not a direct determinant of performance, being located in a region with a high concentration of defense-related activities can provide access to a skilled workforce and a supportive ecosystem. Oversight can be managed effectively regardless of location through established communication channels and site visits, but proximity can sometimes streamline certain aspects of contract management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 12450 FAIR LAKES CIR STE 800, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline